Intermediate
Prop Challenge
An evaluation to qualify for trading a proprietary firm’s capital.
Definition
A prop (proprietary trading firm) challenge is a test some firms run to decide whether to fund you. You usually trade a demo or evaluation account and must hit a profit target while staying inside loss limits. Passing can grant access to the firm’s capital under their rules. Rules and outcomes vary widely between firms.
Example
A challenge might ask you to make 8% profit without ever losing more than 5% in a day or 10% overall. Stay inside those lines and you pass.
Related terms
Where you see this in the app
Educational content only. Map.Trade does not provide financial advice or trading signals.